Persistent Systems Revenues cross $100M during FY 08. Growth of 51.3% year-on-year in Dollar terms

Persistent Systems, the leader in outsourced product development (OPD) announced its excellent growth as it declared its financial results at an annual press meet today.

Financial highlights for the year are:

· Revenue in USD for FY 08 was US$ 105.80 Million as compared to US$ 69.92 Million for FY 07; growth of 51.3%.

· Revenue in INR for FY 08 was Rs. 4,248.50 Million as compared to Rs. 3,156.28 Million for FY 07; growth of 34.6%.

· Profit After Tax for FY 08 was Rs. 831.74 Million as compared to Rs. 555.71 Million for FY 07; growth of 49.8%.

On March 31, 2008, the number of employees was 3867 as compared to 3018 from the previous year. Active customers were 152 on March 31, 2008 as compared to 115 on March 31, 2007.

Commenting on this occasion, Dr. Anand Deshpande, Chairman and Managing Director said, “FY 08 was a very significant year for Persistent as we crossed the US$100M landmark. We achieved excellent growth of top-line and improved the bottom-line. This was achieved by improving sales and operational efficiencies despite the challenges posed by the appreciating Rupee. We have continued our focus on changing the way software products are designed, developed and delivered to increase revenue, margins and brand value for our customers”

Dr. Deshpande further added, “I would like to congratulate the team for their hard work and thank all the customers for their continued support.”

Persistent also announced, that the US Headquarters had moved to a larger location in San Jose, California and the setting up a development centre in the Special Economic Zone (SEZ) in Hyderabad. The Hyderabad SEZ is expected to ramp-up to seat 1000 engineers by the end of FY 09. This is in addition to the growth expected in Persistent’s centres in Pune, Nagpur and Goa.

Other Highlights

· Leadership team strengthened with the addition of Ram Gupta as independent non-executive director on Board.

· Management team strengthened with the addition of Rajesh Ghonasgi as Chief Financial Officer and Yesh Subramanian as Chief Marketing Officer.

· Added sales offices across North America. In addition to the Silicon Valley, Persistent now has sales offices in Seattle, Chicago, New York, Boston, Dallas and Montreal.

· Set up branches in Canada, The Netherlands and a subsidiary in Singapore.

· Certified as “ISMS: ISO 27001:2005” qualified organization.

· Launched Persistent’s Leadership Program: ‘The Arjuna Program’ to identify and create the next generation leaders for Persistent.

· Tied-up with Birla Institute of Technology and Science (BITS), Pilani for an MS program for employees.

· Won the Red Herring 100 Global award 2007.

· Won the Frost & Sullivan Growth Strategy Leadership Award for Outsource Product Development.

· Awarded by the Government of Maharashtra “Maharashtra IT Award 2007″ for IT leadership in Nagpur.

About Persistent Systems (www.persistentsys.com)

Established in 1990, Persistent Systems is an outsourcing innovator and leader, focused exclusively on Software Product Development. With 4,000 employees, ground-breaking business models, and reusable assets and frameworks, Persistent Systems helps its 170+ customers increase revenues and margins, and enhance brand value. Persistent delivers over 500 product releases each year for its platform and application providers, and enterprise customers. Persistent has developed revolutionary processes for the entire product lifecycle which reduce time to market while delivering consistent quality and customer satisfaction – as evidenced by customer partnerships that span many years.

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Pinal Patil                                                                                                    Nabanita Mukerjee

Persistent Systems Ltd.                                                                                 20:20 Media Pvt. Ltd.

Tel: +91 98906 76044                                                                                 Tel: + 91 98236 20226

Email: pinal_patil {at} persistent.co(.)in                                                    Email:  nabanita {at} 2020india(.)com